Have you recently decided to register a company? Do you have an existing registered business name under your partnership ABN?
It is essential to consider a transfer of business name when there is a change in structure of your business from partnership to a company. This will involve, generally, that a request for transfer of business name be submitted to ASIC. You will be provided a transfer number once this is submitted, which will allow you to transfer the business name to the new company by registering the business name under it. This will be similar transferring a business name where there is a change in business ownership.
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Steps to Transfer a Business Name from Partnership to Company
1. Prior to Transferring a Business Name
Transferring the business name is essential in a change of business structure, such as changing from a partnership to a company. This transfer is usually completed by existing partners of the business. It is important to note that under the most common partnership agreements, there is a clause that states that the business name is registered under all both partners. Often, this will allow either partner to initiate the transfer of business name.
2. Initial Steps to Transfer
Existing registrants of the business name need to log onto ASIC Connect. Ensure that all your details as are up to date, most notably the business email address. Then select the business name you are transferring and click to transfer this business name. You will then be asked to review your transaction and then confirm the transfer.
This transfer submission will cause ASIC to cancel the registration within 28 days, although it is important to keep a lookout for an email from ASIC stating the transfer number for the transfer request. This transfer number will be 13 characters long and is often sent to other partners as well, per the Business Name Register.
3. Registering the Business Name in the New Company
This transfer number will be required to register the business name under the new company. The transfer number is valid for four months from the time of application, after which the number will expire and the business name will be available for others to register. To accept the transfer, you will need to log in to ASIC Connect, enter the new company ABN and then the business name you wish to transfer. You will then be asked to enter the transfer number that you have been given and then select the registration period you wish for the business name. This will incur a fee for one year or for 3 years. Following this, you will be required to review your application and confirm the transfer. This new registration of the business name under the company will begin afresh, from the moment this transfer of business name is accepted.
Conclusion
If you wish to retain your current business name, it is essential to keep this in mind when changing business structures from a partnership to a company. To transfer the business name to the new company it is important to register the business names, as per the steps above. Although the transfer can be lengthy, it is important that this is done correctly to ensure that the business name is still registered for you to use.
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